Buy, Sell or Hold: What should investors do with Kajaria Ceramics, Vakrangee and HUL?

Extending gains for the third consecutive session, the benchmark indices ended higher by more than half per cent each on Friday. The broader Nifty50 gained 87.70 points or 0.54% to end at 16,220 and the Sensex settled higher by 303.38 points or 0.56% to close at 54,481.84. However, the Indian market closed the week ended on July 8 with three per cent gain.  

Meanwhile, Nifty midcap and small ended with minor gains as they ended higher by around 0.3% each on Friday.  

Among sectoral indices, except for Auto, Metal and Realty, which saw partial profit booking, all other sectors witnessed some buying interest on Monday. Nifty Metal was the top drag among sectoral indices with nearly one per cent cut, while Pharma, Bank and FMCG gained the most.

"During the week, the domestic market saw a bull run, led by consolidation in commodity prices, and reduced FII selling. Crude prices fell over recessionary fears. However, the fall has boosted the appetite for consumption, chemicals, logistics and OMCs as it will reduce the cost burden of these sectors," said Vinod Nair, Head of Research at Geojit Financial services.

Currently, investors are preferring value over growth stocks, resulting in selling across sectors like IT, he said.  

"Defensive sectors like FMCG can perform better due to strong cash flow, high governance, dividend policy and stable earnings growth. As we step towards the new earnings season, quarterly announcements will be the prime focus of the market with an eye on the updated guidance of 2023 financial year," the expert added.  

Meanwhile, certain stocks came in focus on Friday. These stocks were Kajaria Ceramics, Vakrangee and HUL. Kajaria Ceramics rose nearly five per cent, Vakrangee declined around five per cent and HUL ended with around one per cent gain.  

Here is what Amol Athawale, Deputy Vice President - Technical Research, Kotak Securities Ltd, suggests investors should do with these stocks on Monday.
 
KAJARIA CERAMICS:
In this week, the stock rallied nearly 6 percent. After a short -term correction, the stock has formed double bottom formation. In the last week, the stock successfully cleared the 50-day SMA (Simple Moving Average), and post breakout it is comfortably trading above the same. For the trend following traders 1000 or 50-day SMA would be the sacrosanct level, trading above the same, we can expect uptrend continuation wave till 1080-1100. On the flip side, below 50-day SMA (980) uptrend would be vulnerable.
 
VAKRANGEE:
After a quick pullback rally, once again the stock witnessed resistance near 28 and corrected sharply. Despite strong market momentum, the stock witnessed selling pressure at higher levels. The short-term texture of the stock is non-directional, perhaps, traders are waiting for either side breakout. For the bulls, 28 or 50-day SMA (Simple Moving Average) would be the important breakout level to watch. And if the stock manages to trade above the same, we can expect a fresh uptrend rally towards 30-31. On the flip side, trading below 25 or 20-day SMA may increase further weakness up to 24-23.  

HUL:  
In the last week, the stock has rallied nearly 10 percent.  On July 8, 2020, on the short-term time frame stock has formed a strong price volume breakout pattern. The texture of the pattern suggests breakout continuation formation will continue in the near term if stock succeeds to trade above 2440 level. For the swing traders 2440 would be the sacrosanct level, trading above the same we can expect uptrend continuation wave up to 2550-2625.